When they replace the USD...

If (when) the US dollar crashes, I see nothing but chaos. Pretty much everything is bought/ traded in $US. Until the world weans itself off the $US as a reserve currency and replaces it with a bunch of commodity backed currencies, a collapsed dollar will cause chaos.
Only currency to be in whilst that happens is gold/silver.

 

If the people making these kind of decisions actually gave a rats arse about ethics and human rights this wouldn't be a silly idea. Perhaps not bananas alone but a currency backed by food could ensure a more ethical distribution of wealth. Say the new dollar unit was based on a collection of simple food items like rice, wheat, meat and water. Base a currency unit on some form of "nesessities for life index".

Rather than the boom and bust cycles being driven by bankers playing with interest rates they would be driven by the quality of growing seasons and the innovations that create more economical ways of feeding our populations. The cost of feeding yourself would no longer be constantly inflated, cost of living could be much more stable and the price of cheap imported Chinese plastic would depend on a countries ability of feed themselves.

Recent example of how ridiculous current model of oil and gun backed currency is. In nz parliament the Green Party has been promoting a round of QE under different names and terms but admittedly money printing. Any why? Their rational if we make our money worth less our exporters will do better, effectively to sell our exports mainly food and other raw products cheaper. But this is only making these exports cheaper to buyers buying on foreign currency's since simply printing money does not increase the average kiwis income. Prices for commodities we export do not come down in nz, we would just be disadvantaged in buying our own commodities on the world market. Then on the other side to import products would become more expensive.

Under a food backed currency a country such as nz with excess food production would have trade surpluses relative to the rest of the worlds need for our food. Countries providing sustenance to the world market would be the wealthy ones, not those with the biggest non productive military, banking and government sectors.

 

Might help with the food waste issues too.

http://en.mercopress.com/2013/01/19...production-lost-to-waste-says-engineers-group

 

Hmm, not sure, care to elaborate on your thoughts? genuinely interested on your take.

In my opinion if it ever even becomes a topic of discussion people will rush to the metal regardless.
Can you imagine the demand due to fear? I can't see an outcome that doesn't have gold holders rolling in cash.

 

Agreed,

It's a sad state of affairs when you have a "We Buy Gold" sign on every city block it seems with people eager to get 40% of the value for their Gold.

Interesting times we live in......

Edit Grammer

 

B, with a little of D